Page 115 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes By June 2010

1. Carrying out review of increased usage of cards and the decline in use of cash for retail
transactions.
2. Finalising information system policy framework for storage of data/information – for
paper and electronic clearing modes.
3. Framing guidelines for collection of foreign-currency denominated cheques payable in
locations that have significant volumes.
4. Guiding/Advising NPCI on the roadmap for various retail payment system development
initiatives - 24x7 funds transfer system, redesigned ECS/ACH, etc.

5. Discontinuing High Value clearing at all locations in the country.
6. Review and progressively discontinue bilateral clearing arrangements between banks.

During the year July 2010-June 2011

1. Putting in place appropriate framework for off-site monitoring/surveillance and on-site
audits/inspections/scrutinies to ensure compliance with the laid down prescriptions.

2. Publishing the Red Book on Payment Systems in India in collaboration with the Committee
on Payment and Settlement Systems, BIS.
3. Reviewing and categorising the Systemically Important Payment Systems (SIPS) and
System-Wide Important Payment Systems (SWIPS).
4. Reviewing
(a) Impact of rationalization of charges on the use of various payment systems
(b) Growth in the use of prepaid payment instruments
(c) Bank group-wise usage of IDL

(d) Impact of closure of High Value clearing on MICR clearing and electronic mode.
5. Monitoring of the activities of CCIL including reviewing the shareholding pattern and
management.

6. Putting in place a BCP arrangement for top 100 clearing houses in the country. Also,
considering alternate settlement arrangements in the event of non- availability of RBI as
settlement bank.

7. Enabling Single Window facility for all member banks that are part of the clearing houses
managed by major banks for viewing and transfer of funds from / to their own accounts.
8. Extending the facility of Secured Web Site to cover all MICR-CPCs.
9. Taking steps for migrating all large value and time critical payments to the electronic
mode.
10. Enabling all bank branches in the country with IFSC and MICR codes.
11. Reviewing number of settlements in NEFT based on volume / requirement / efficiency.
12. Providing confirmation to the remitter on credit to beneficiary account in NEFT
transactions.
13. Commencement of various Government payments through electronic modes in
coordination with Central / State Governments.

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